PPP Set to Open Jan. 11January 8, 2021
The U.S. Small Business Administration (SBA) announced today that it plans to begin a tiered opening for round 2 of the Paycheck Protection Program (PPP) the week of Jan. 11.
Starting Monday, Jan. 11, only community financial institutions will be able to make first-draw PPP loans, and on Wednesday, they will be allowed to make second-draw PPP loans. The full PPP will then open up to all participating lenders “shortly thereafter” according to a statement from SBA.
This delay is the result of language in the Economic Aid Act which set aside funds for the smallest and hardest-hit small businesses. SBA, in another guidance document that was just released, outlines the steps it is taking to effectively implement the legislation by, among other items: “Accept PPP loan applications only from community financial institutions for at least the first two days when the PPP loan portal re-opens.” The exact date for a full opening of the PPP has not yet been published.
Two final interim rules were published late Wednesday evening, Jan. 6, 2021, outlining the process for applying under the 2nd round of the PPP. The first interim final rule implements changes to the PPP under first-draw applications; and the second interim final rule outlines the process for second-draw PPP for prospective borrowers who received a PPP loan in 2020.
Click here for NSBA’s analysis on both regulations.